TAN and APR: What are they and why are they important?

When applying for funding, it is important to consider some aspects.
The TAG and APR are two extremely relevant rates in the credit applications that accompany the installments.

The TAN - Nominal Annual Rate - is the rate that defines the annual amounts, that is, processing of the monthly amount (12 installments) that involve the payment of interest associated with the requested credit, being mandatory to include all the cost values ​​related to the financing - can be fixed or variable.

The APR - Global Effective Annual Charge Rate - this rate can be an aid in checking the feasibility of choosing credit proposals, as the one with the lowest value will be the most affordable for the customer.
This translates the price of a loan in total, as it includes interest, commissions, insurance, maintenance, and payments to third parties, as in the case of intermediaries (notary costs are the exception);

The difference between the two rates depends on what they add up, and the TAN does not add charges that the customer will have to pay for the credit granted, while the APR represents the total cost that your order will cost you.

In a practical case, in a credit request of €5,000 for payment in 84 months, the APR would be around 11% and the TAN would be around 8.5%, that is, all percentage values ​​of these two rates seen in various proposals, must be addressed to the smallest change, ensuring the most viable and cheapest choice for the customer.

Source : SUPERCASA